Syrma SGS Technology Limited CC-Mar24.pdf · 2024-05-13
Hi, good morning, sir. My first question is on the gross margin decline that we have seen this year which actually has been quite sharp partly offset by operating leverage benefits that we spoke about. Now, what has really led to thi s level of gross margin erosion b ecause mix alone cannot justify that. It appears that margins across individual s egments have also been declined?
Sure, sir. So, we no longer get the gross margin details on a segment -wise basis, but if I just assume that in second half, we had similar gross margins across segments as first half for all of the segments other than consumer, then the implied gross margin for the consumer business would be only with single digits. So, what are we really missing over here? Is consumer business this lower margin business for the company? I mean, with single digits on a gross margin side would possibly mean no margins at the EBITDA level or maybe even losses at the EBITDA level. Or is it that in one of the segments, at least we have seen a big margin drop?